Count apparel marketer Chico’s FAS among the handful of companies enthusiastic about its direct marketing opportunities during 2009, according to Securities and Exchange Commission documents.
“Although the company’s direct-to-consumer operations encompassed only 4.5% of the company’s total sales for fiscal 2008, it is anticipated that the percentage will continue to grow and could grow faster than in the past, due to the company’s concentrated efforts in the area,” according to comments in SEC forms.
The company also said that investment in, and growth acceleration of, its direct sales were among its short-term fiscal 2009 goals. Chico’s 2008 direct marketing sales, at $70.6 million, were 2.1% below the $72.1 million level seen in 2007.
The chain has increased the total number of retail stores during the last few years from 907 during fiscal 2006 to 1,038 during 2007, and ending 2008 with 1,076. Both net sales per store and net sales per square foot declined from 2007’s levels. Comparable store sales dropped 15.1% from 2007.
For the full year, Chico’s racked up $1.58 billion in sales, down from $1.71 billion in 2007. The company recorded a net loss of $19.1 million, compared to $88.9 million in net income during 2007. Much of the loss was due to a spike in cost of goods sold, despite the decline in total sales.
The Historian’s Take: The company’s 2007 financials contained insight into the company’s three loyalty programs (one for each of its product lines). The Chico’s and Soma Passport Club had approximately 3.4 million active customers (those that made at least one purchase within the preceding 12 months ) at the end of fiscal 2007 versus approximately 3.2 million at the end of fiscal 2006. WH|BM’s Black Book increased to approximately 2.1 million at the end of fiscal 2007 from approximately 1.8 million at the end of fiscal 2006. The company’s most significant comment within its 2008 filing was that a large portion of the individuals within its loyalty clubs receive an average of average of one mailer per month.
